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's activity report 2022

The main activity of Haapsalu Uksetehase AS is the production, installation, and sale of wooden doors and windows.

The company's sales revenue growth for 2022 compared to 2021 was 18.19%, which was slightly better than planned.

However, the company's operating profit only increased by 5.4%, which was related to the very high increase in production inputs throughout 2022 and the general high inflation in Estonia.

The share of direct exports in turnover was 35.1%. The largest export target was Finland, which accounted for 88% of all direct exports and this indicator increased compared to 2021. Finland was followed by Norway and

Denmark.

The biggest challenges in 2022 were problems related to the war in Ukraine: the rise in energy carrier prices and fluctuations and availability of timber materials, but also the general psychological tension of employees due to the very close war demands and constant threats from Russia.

However, the order portfolio was consistently full throughout the year, so the year was generally successfully completed.

The improvement in supply reliability and production efficiency, which is largely due to large-scale investments made in 2020 and 2021, also had a positive impact on economic results.

Investments for the purpose of production automation were also somewhat continued in 2022, and new equipment purchase agreements were made with suppliers for 2023.

In 2022, the company acquired cleaning equipment for cleaning liquids used in finishing processes from chemicals and created a corresponding job, which is part of the company's environmentally friendly activities.

At the end of 2022, 167 people worked at Haapsalu Uksetehas.

The company cooperates with Haapsalu Vocational Education Center and is a practice base for students of wood specialties.

The biggest challenge for 2023 is unexpectedly high loan interest rates, which will significantly affect the company's net profit numbers in 2023. But it also affects our ability to get work, as a large part of our current and future customers' purchase decisions are also affected by the size of loan interest. Therefore, we do not forecast turnover growth for 2023, but we strive to make it happen.

The company sets goals for environmentally friendly activities and monitors the achievement of these goals.

The main goal is to reduce the environmental footprint, including reducing CO2 emissions and energy use, increasing the use of renewable energy, reusing materials, collecting and disposing of waste by type.

We have also started the process of calculating the carbon footprint of all our products.

Being a significant employer in its area of operation, the company has close ties with the local